Diamond in Talks to Provide Sea Lion Rig for Premier Oil
Monday 5 February 2018
Houston-based Diamond Offshore Drilling could provide a drilling rig for Premier Oil’s planned Sea Lion development off the Falkland Islands.
Joint venture partner Rockhopper Exploration revealed Monday a letter of intent had been signed for Diamond to provide “a suitable drilling unit” for the first phase of development at Sea Lion.
The agreement provides a period of exclusivity, until 31 December, which will allow the Sea Lion joint venture to negotiate binding documentation for Diamond to provide a drilling rig.
Rockhopper chief executive Samuel Moody said the company was “delighted” to have signed the letter of intent with Diamond, noting the company had provided the rig for its successful drilling campaign over 2010 and 2011 off the Falklands when Sea Lion was discovered.
Rockhopper has still not named the contractors it announced last month would provide well and logistical services.
It has previously been reported that the Sea Lion joint venture is looking to sanction the first phase of development by the end of the year, subject to gaining financing and the necessary regulatory approvals.
The proposed project will see the development of 220 million barrels in PL032 using a floating production, storage and offloading vessel, with another 300 million barrels to be tapped in phase two from remaining reserves in the same licence as well as satellite deposits in PL004.
The overall Sea Lion complex in the North Falkland basin is estimated to hold gross recoverable contingent oil resources of 517 million barrels of oil out of an in-place estimate of 1.6 billion barrels.
Premier holds a 60% operating stake in the licence, which has been extended to May 2020, with Rockhopper on 40%.